Support needed to keep local government aid

As the state continues to grapple with the COVID-19 pandemic and lawmakers begin to craft the next two-year state budget, we in greater Minnesota need to make sure our voices are heard.
On Friday the Star Herald participated in a press conference call with board members of the Coalition of Greater Minnesota Cities (CGMC). The meeting addressed priorities to bolster economic recovery in rural Minnesota, and key among them is Local Government Aid.
“The pandemic has taken a toll on our community,” said Greg Zylka, mayor of Little Falls and president of the CGMC. “Some segments are still really struggling, and that pain has ripple effects across the city. As mayor, it’s heartbreaking because you want to be there for everyone.”
Local governments statewide are feeling the impacts. Since the start of the pandemic, the city of Luverne, like many cities, has assisted businesses by waiving fees, deferring property tax collections, bending rules and distributing federal coronavirus relief funds.
Meanwhile, cities still need to provide essential services like public safety, street maintenance, drinking water and wastewater facilities, and parks and trails.
As we continue to deal with the uncertainty of the pandemic, it’s more important than ever for the State Legislature to continue supporting outstate communities with Local Government Aid.
For background, LGA was established in 1971 when state leaders recognized that rural communities were important – that it wouldn’t be healthy to have the entire state population living in Minneapolis and St. Paul.
However, small towns have fewer resources to support basic services, so LGA was established to help make up the difference between a city’s “revenue need” and its “ability to pay.” The greater a city’s revenue need in relation to its ability to pay, the more LGA the city would receive, all other things being equal.
“Ability to pay” has generally been measured based on the size of a city’s property tax base; cities with a large per capita property tax base are considered to have a greater ability to generate revenue locally than cities with a small per capita base.
So far, Governor Tim Walz’s budget supports current LGA funding, but with Minnesota facing a potential $1.3 billion deficit in the next biennium, we can’t assume anything.
For many cities, any cut to the LGA program would be “devastating,” according to Zylka.
“What would you do? What do you cut?” he asked Friday. “If the state were to cut LGA, the only way to remedy that without cutting services like police and fire is to tax the heck out of our communities. Our residents and businesses are hurting enough right now. Cutting LGA would be a huge setback in an already difficult time.”
We believe our local representatives in St. Paul understand the importance of LGA to our communities, but it doesn’t hurt to remind them. Rep. Joe Schomacker can be reached at 651-296-5505, or email: rep.joe.schomacker@house.mn. Sen. Bill Weber is at 651-296-5650, or email: sen.bill.weber@senate.mn.
Now’s a good time to remind Rep. Schomacker and Sen. Weber  to urge their colleagues to support maintaining an investment in greater Minnesota.